Music industry earnings Q3 2022 Pre-recession growth
20,000 foot view: The early 2020s saw an influx of capital into the music business, with the promise of music rights being an asset class that was uncorrelated with the wider economy. The irony is that as music catalogue investments slowed (due to rising costs of capital), the first nine months of 2022 saw the music business deliver a performance that suggests the industry is indeed setting a path that is not being pulled down by recessionary conditions as much as many other industries. There were areas of concern of course, but the overall picture proved to be a positive one.
- Revenues across global music industry companies grew in the first nine months 2022 compared to one year
- The growth accentuated by the post-pandemic rebound live music, which saw a
- While digital provider (DSP) streaming revenue grew just the major music groups streaming (across recordings and publishing)
- Record label rates were highly varied, shaped by diverse performances and volatile rates
- The independent tracked grew by compared to the majors
- The major labels all grew merchandise and expanded rights revenue by generating between and 2022
- Publishers are a bigger share of streaming – major labels grew streaming by compared to for the publishers
- Universal Music (UMP) is closing the gap Sony Music Publishing (SMP), with 2022 revenues being of SMP’s, from one year earlier
- The Chinese market is slowing, with Tencent Entertainment’s (TME) first nine months revenue growth going from in to 0.0% in 2022
- Slowing DSP growth reflects the combined effect the wider economic environment and saturation of the main streaming
- Despite slowing the DSPs tracked added million between and 2022 indicating continued consumer demand
Companies and brands mentioned in this report: Believe, Live Nation, LiveXLive, NetEase Cloud Music, Pandora, SiriusXM, Slacker, Reservoir Media, Sony Music Group, Sony Music Publishing, Spotify, Tencent Music Entertainment, Universal Music Group, Universal Music Publishing, Warner Chappell, Warner Music Group, YouTube
NOTE: The figures in this report refer to revenues and user numbers for the first nine months of 2022, rather than full year projections.